News Column

Brakes placed on stocks

July 17, 2014



CP Rail remains star







Stocks in Toronto settled, after edging up to a record high on Thursday, boosted by a jump in shares of Canadian Pacific Railway after the company reported a quarterly profit that beat market expectations.

The S&P/TSX composite index fell into the red 9.41 points to greet noon at 15,216.93, after a surge of 145 points on Wednesday.

The Canadian dollar slipped 0.07 cents to 93.02 cents U.S.

The Canadian benchmark index has gained about 12% this year, driven by a rally in shares of oil and gas companies and gold miners.

CP Rail climbed 3.6% to a record high for the stock after reporting an increase in second-quarter earnings as it worked to recover from backlogs and a harsh winter. Late in the morning, it was trading at $204.60.

The gold-mining sector climbed with the bullion price. Goldcorp rose 1.4% to $29.83, and Barrick Gold added 0.7% to $20.42.


Among energy producers, Canadian Natural Resources was up 0.3% at $48.28.


Loblaw Cos named Executive Chairman Galen Weston president of the grocery chain, replacing Vicente Trius. The stock fell 0.9% to $48.84.

The market had opened lower on concerns about the implications of a wave of sanctions that Western powers imposed on Russia.

On the economic front, Statistics Canada reported this morning that foreign investors bought up $21.4 billion of Canadian securities in May, most of them government bonds. Canadian investors added $2.0 billion of foreign securities to their holdings in the month, most of them non-U.S. instruments.

ON BAYSTREET

The TSX Venture Exchange slipped 2.43 points to 1,006.96.

Seven of the 14 Toronto subgroups were lower at noon, as energy stocks dwindled 0.9%, global base metals dropped 0.8%, and consumer discretionary stocks slid 0.4%.

The half-dozen gainers were led by gold, up 2.1%, materials, picking up 1.2%, and industrials, up 0.8%.

Telecoms were flat at noon hour.

ON WALLSTREET

Markets in the U.S. were spooked Thursday after news broke of another jet airline crash.

The Dow Jones Industrials lurched lower 71.74 points to 17,066.46.

The S&P 500 skidded 12.90 points to 1,968.67, and the NASDAQ composite tumbled 37.73 points to 4,338.24

A Malaysian Airlines jet reportedly crashed in Ukraine. The airline has confirmed it lost contact with the plane in Ukraine.

Microsoft announced a staggering 18,000 job cuts to come this morning. The move signals that new CEO Satya Nadella means business about turning around the computing giant. Most of the cuts are coming from the Nokia brand, but some of the bleeding will come from Microsoft proper. The stock is up about 1%.

In other tech news, flash drive maker Sandisk is getting hammered to the tune of an 11% drop in early trading. The company beat on earnings and revenue this quarter, but that wasn't enough to satisfy Wall Street. It said in an earnings release that it brought in a record $1.6 billion U.S. in revenue for the quarter, but its margins are shrinking.

Barbies and Hot Wheels aren't entertaining kids like they used to. Mattel saw tepid growth that was far less than Wall Street was expecting. The stock fell over 6% in early trading.

One bright spot for the company is American Girl doll sales, though it's a small part of the company's business.

After rejecting an $80-billion U.S. bid from Rupert Murdoch's Twenty-First Century Fox, Time Warner saw its 17% jump in yesterday's trading. Investors don't think that will be the end of things. The stock is up another 3.5% today. Fox shares are flat.

Morgan Stanley, the last big American bank to report earnings this quarter, did better than Wall Street was expecting. It beat estimates for both earnings and revenue on the back of a strong performance from its units in stock trading and investment banking. The stock is up about 1%.

Economically speaking, the U.S. Labor Department reported that initial claims for jobless aid decreased by 3,000 to a seasonally adjusted 302,000 in the week ended July 12. That was less than the 310,000 figure forecast of economists surveyed by The Wall Street Journal.

Meantime, the number of housing starts and building permits issued in June declined 9.3% to a seasonally adjusted annual 893,000 million unit-pace, the lowest since September, that word from the Commerce Department.

Economists polled by Reuters had forecast starts rising to a 1.02 million-unit rate last month.

Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.48% from Wednesday's 2.54%. Treasury prices and yields move in opposite directions.

Oil prices remained positive $1.44 to $102.64 U.S. a barrel.

Gold prices hiked $22.90 to $1,322.70 U.S. an ounce.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Baystreet Stock Market Update (Canada)


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